Property Management

A South Dakota property manager who collects a management fee based on collected rents has what type of compensation arrangement?

AFlat fee management
BPercentage of gross rents collected✓ Correct
CPerformance-based bonus
DHourly billing arrangement

Explanation

The most common property management fee structure is a percentage of gross rents collected (typically 8–12% for residential properties). This aligns the manager's incentive with maximizing rental income and actually collecting rent, rather than just listing properties.

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